Supplier development means organizations and their suppliers working together towards a common goal which involves establishing long term business partnerships with selected suppliers. It is based on the principle that suppliers and clients can gain more benefit through cooperation, rather than pursuing their own interests separately.Despite the importance of supplier development as just mentioned, surprisingly little work has been done in this field with respect to small/medium sized enterprises (SMEs). Obviously, there is much need for research on supplier development. This thesis is a contribution.Cosalt Holiday Homes is an example of a small/medium sized company that has chosen to implement a supplier development programme. Its main aim is to gain a competitive edge through supplier development in terms of quality, cost reduction and design improvements. This dissertation reflects on the Cosalt experience and, taking into account the main management literature, attempts to establish a supplier development strategy for small/medium sized companies. It thus contributes to the literature in the field of supplier development.